Morrisons is transitioning its online grocery operations to focus more on in-store fulfilment.
- Utilising Ocado’s technology, Morrisons aims to enhance in-store processing of online orders.
- This shift involves the gradual cessation of operations at Ocado’s Erith centre and boosting activity at the Midlands centre.
- Rising demand for online services has driven Morrisons to expand its store network using AI technology.
- Ocado supports this move with its Smart Platform, ensuring continuous service growth.
Morrisons is shifting its strategy in online grocery fulfilment, moving towards greater in-store order processing. This approach is aimed at enhancing the customer experience by leveraging Ocado’s advanced technology.
The partnership will see Morrisons cease operations gradually at the Erith fulfilment centre. Instead, they will increase the volume of orders handled by the Midlands fulfilment centre.
As demand for online grocery shopping from Morrisons customers grows, the company is expanding its store network capability. This will be supported by Ocado’s AI-powered technology, which allows efficient processing of online orders directly in stores.
According to Rami Baitiéh, CEO of Morrisons, the transition to in-store fulfilment is crucial to providing customers full access to their unique Market Street offer. The change will not impact the geographical coverage of Morrisons.com across England, Wales, and Scotland.
Ocado’s CEO, Tim Steiner, highlighted the seamless service continuity provided through this strategic transition. The reduced load on the Erith centre allows Ocado to achieve better capacity utilisation and supports its market share growth aspirations in the UK.
This strategic shift promises to strengthen Morrisons’ online grocery capabilities while supporting Ocado’s growth objectives.